A Single-Settlement, Energy-Only Electric Power Market for Unpredictable and Intermittent Participants

Geoffrey Pritchard (), Golbon Zakeri () and Andrew Philpott ()
Additional contact information
Geoffrey Pritchard: Department of Statistics, University of Auckland, Auckland 1010, New Zealand
Golbon Zakeri: Department of Engineering Science, University of Auckland, Auckland 1010, New Zealand
Andrew Philpott: Department of Engineering Science, University of Auckland, Auckland 1010, New Zealand

Operations Research, 2010, vol. 58, issue 4-part-2, 1210-1219

Abstract: We discuss a stochastic-programming-based method for scheduling electric power generation subject to uncertainty. Such uncertainty may arise from either imperfect forecasting or moment-to-moment fluctuations, and on either the supply or the demand side. The method gives a system of locational marginal prices that reflect the uncertainty, and these may be used in a market settlement scheme in which payment is for energy only. We show that this scheme is revenue adequate in expectation.

Keywords: electricity market; stochastic programming; locational pricing; wind power; regulation (search for similar items in EconPapers)
Date: 2010
References: View complete reference list from CitEc
Citations: View citations in EconPapers (33)

Downloads: (external link)
http://dx.doi.org/10.1287/opre.1090.0800 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:oropre:v:58:y:2010:i:4-part-2:p:1210-1219

Access Statistics for this article

More articles in Operations Research from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().